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Direct materials Direct labor Variable overhead. Fixed overhead Total of part A23 annually at a total cost of $242,000 $ 33,000 68,000 58,000 83,000 $242,000
Direct materials Direct labor Variable overhead. Fixed overhead Total of part A23 annually at a total cost of $242,000 $ 33,000 68,000 58,000 83,000 $242,000 The Spike Company has offered to supply 11,300 units of part A23 per year for $18 per unit. If Winter accepts the offer, $3 per unit of the fixed overhead would be saved. In addition, some of Winter's facilities could be rented to a third party for $16,300 per year. What are the relevant costs for the "make" alternative? Multiple Choice $209,200. $192,900. $220,100 The Spike Company has offered to supply 11,300 units of part A23 per year for $18 per unit. If Winter accepts the offer, $3 per unit of the fixed overhead would be saved. In addition, some of Winter's facilities could be rented to a third party for $16,300 per year. What are the relevant costs for the "make" alternative? Multiple Choice $209,200. $192,900. $220,300. $187,100
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